Cabinet discusses black money issue

A day after the government came under attack from the Supreme Court over black money stashed abroad, several Ministers on Thursday voiced concern over the issue at the Union Cabinet meeting here but Prime Minister Manmohan Singh made it clear that the details could not be disclosed.

The Ministers noted that the government was facing the flak from virtually all quarters and the impression was gaining ground that the government had something to hide on the issue, sources said.

At the meeting, Dr. Singh pointed out that the government could not disclose the names about whom it had information regarding accounts in foreign banks as it was bound by various treaties.

Finance Minister Pranab Mukherjee said the government had received information about the black money accounts in foreign banks as per international treaties and if this is revealed, no government would share such details in future, the sources said.

It was emphasised that the information was shared purely for taxation purposes and the government intends to do the same without making public the names of account holders or other details, the sources said.

Mr. Mukherjee said he would soon hold a press conference to clear the air on the issue.

The Supreme Court on Wednesday pulled up the government for withholding information on black money stashed in foreign banks, saying it is not just limited to tax evasion but a “mind boggling crime” amounting to “theft” and “plunder” of national wealth having security ramifications.

Hours later, the Prime Minister said “some information” about black money accounts had been provided to India “for use in the collection of due taxes. We cannot use the information for any other purposes and that information cannot be made public” as the country cannot violate the obligations under international treaties.

Source http://www.thehindu.com/news/national/article1105247.ece

Kiran Kumar Reddy meets Sonia, discusses Telangana

On the eve of the release of the Justice B.N. Srikrishna Committee report on Telangana, Andhra Pradesh Chief Minister N. Kiran Kumar Reddy on Wednesday met Congress president Sonia Gandhi and is understood to have discussed the political situation in the state.

Mr. Kiran Reddy arrived here on Wednesday morning to participate in Thursday’s meeting convened by Home Minister P. Chidambaram to discuss the contents of the report of the committee.

He met Ms. Gandhi at her 10, Janpath residence for over an hour and is understood to have discussed the political situation in the state arising out of the Telangana statehood demand.

Andhra Pradesh is waiting with bated breath for the release of the report, which is understood to have dwelled into the demands for a separate Telangana state as well as a united Andhra Pradesh.

During the meeting, the Chief Minister is believed to have briefed the Congress president about the elaborate security arrangements made by his government to thwart any violence.

Violence had erupted last year in the Telangana region after the Centre decided to hold wide-ranging consultations with all stakeholders on the statehood demand.

Ahmed Patel, Gandhi’s political secretary, was also present at the meeting.

The issue of Congress MPs and MLAs threatening to resign from their posts if the committee did not recommend a separate Telangana state is also believed to have come up for discussion.

However, there was no official word on what transpired at the meeting.

Meanwhile, the Congress High Command has asked all party MPs from Telangana to be in the capital today for consultations.

The MPs accompanied by PCC chief D. Srinivas are expected to meet Finance Minister and senior Congress leader Pranab Mukherjee later in the day. The MPs may also meet other senior leaders of the party on Wednesday and Thursday.

Source http://www.thehindu.com/news/national/article1034849.ece